High oil prices may hit India’s growth, but strong fundamentals offer a cushion: S&P
Mint·4h ago·Neutral
What Happened
S&P Global Ratings says India's strong fundamentals would cushion rising crude oil prices from West Asian conflict. However, if oil averages $130 per barrel in 2026, growth could slow 80 basis points in FY27. Corporate earnings would fall 15-25%, while weak bank loans could rise to 3.5%. S&P expects no immediate rating changes but warns fiscal consolidation efforts may face temporary setbacks.
Key Entities
S&P Global RatingsIndiaOil pricesWest Asian conflictFY27 growthCorporate profitabilityBanking sectorBrent crudeFiscal consolidation